Climate and Economy Solutions Program (CESP)

Overview of the Climate and Economy Solutions Program (CESP) program:

The Climate and Economy Solutions Program (CESP) provides grants to eligible applicants for stationary equipment retrofit and efficiency projects, industrial or commercial vehicle retrofit projects, and self-generated renewable energy and fuel production projects that reduce greenhouse gas (GHG) emissions. reduce greenhouse gas (GHG) emissions that contribute to climate change in a cost-effective way lower energy costs support industry competitiveness in the emerging low-carbon economy promote economic growth and job creation in Manitoba support Manitoba and Canada's pathways to net-zero by 2050.

Benefits of the Climate and Economy Solutions Program (CESP) program:

• Under the Climate and Economy Solutions Program (CESP), funding is provided as a cost-share based on recipient type and must comply with federal and overall stacking limits. Manitoba government entities can receive up to 50% CESP funding with a 50% federal stacking limit. Municipalities, municipal entities, not-for-profit organizations, public sector bodies, boards, and research or academic institutions can receive up to 50% funding with a 75% federal stacking limit. Indigenous recipients, including Indigenous for-profit entities, can receive up to 75% funding with a 75% stacking limit. For-profit entities are eligible for up to 35% funding with a 25% federal stacking limit.

Eligibility criteria of the Climate and Economy Solutions Program (CESP) program:

• Eligible Recipients include:
• A. Manitoba government entities (e.g., government departments, Crown corporations,
• Special Operating Agencies),
• B. Municipalities and municipal entities,
• C. Indigenous recipients (e.g., First Nations communities and organizations, Metis organizations. Includes for-profit entities),
• D. Not-for-profit organizations,
• E. Canadian public sector bodies or boards (e.g., school boards, regional health authorities),
• F. Research and academic institutions, and
• G. For-profit businesses.
• Eligible projects may include one or more of the following:
• A. Stationary equipment1 retrofit projects for fuel-switching from natural gas, diesel, propane and heating oil to renewable energy sources. (e.g. boiler, grain dryer).
• B. Energy efficiency projects for stationary equipment that uses diesel, propane and heating oil.
• C. Vehicle retrofit projects that convert internal combustion engines to electric in industrial or commercial transportation fleets (e.g., school buses, shunt trucks).
• D. Self-generated renewable energy and fuel production projects to offset the need for fossil fuels (e.g., solar, biogas, landfill gas capture and use, district geothermal heating systems).
• Eligible projects must demonstrate material GHG emission reductions in the year 2030 (i.e., emissions reductions must be tangible, measurable, and achievable) and align with Manitobas goals for net-zero emissions by 2050.
• Eligible projects must demonstrate value-for-money and should not exceed $2,500 per tonne of carbon dioxide equivalents ($2,500/ tCO2e) reduced.
• Project applications will be evaluated partly on the basis of value-for-money.
• Projects must take place in Manitoba and be time-bound (have a start and end date). Any project expenses eligible for funding must be incurred between April 1, 2025, and March 31, 2029.